This podcast episode explores the concept of the behavior gap, which refers to the difference between investment returns and the returns earned by individual investors. The section discusses the underlying causes of the behavior gap, such as suboptimal investment choices and emotional decision-making. It also emphasizes the importance of rebalancing, a long-term investment approach, and focusing on portfolio construction and asset allocation. Overall, the section highlights the challenges investors face in achieving optimal returns and provides insights into mitigating the behavior gap.
